The deal creates the nation's largest producer of clean energy.
Constellation Energy's deal to buy Calpine is being driven by fast-rising demand for electricity by the technology industry.
Constellation Energy said on Friday it would buy privately held Calpine Corp, a geothermal and natgas energy company, in a cash-and-stock deal valued at $26.6 billion including debt.
The merger combines two of the country's largest power generators as demand for electricity surges.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Constellation Energy Corporation dropped over 4% on Wednesday following reports it was on the cusp of agreeing to a takeover of gas and geothermal firm Calpine. According to Bloomberg, Constellation was in advanced talks over the cash and stock deal, which would value Calpine at US$30 billion including debt.
Constellation Energy sank after a Bloomberg report it is looking to acquire Calpine. The post S&P 500 Component Constellation Energy Falls On Report Of $30 Billion Natural-Gas Bet appeared first on Investor's Business Daily.
Constellation Energy is nearing an acquisition of Calpine Corp., which would value the company around $30 billion including debt, Bloomberg News reported, citing people familiar with the matter.
Constellation Energy's high-quality nuclear fleet, rising earnings estimates and better-than-industry returns make it a stock worth considering for investors.
Zacks.com users have recently been watching Constellation Energy Corporation (CEG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Constellation leads in clean energy, securing major contracts with the U.S. General Services Administration and Microsoft, boosting growth potential. Financially strong with low long-term debt and high return on assets, but faces minor financial headwinds and operational challenges. Downgrade CEG from Strong Buy to Buy due to the slight over-valuation following the recent rally.
Anthony Crowdell of Mizuho set a neutral rating for Constellation Energy (CEG) as companies like Microsoft (MSFT) turn to nuclear power for A.I.'s electrical demand.